Give Archer Daniels Midland (NYSE:ADM) Another Chance
Feb 25th, 2009 | By Charles Delvalle | Category: Chart of the DayJust a few years ago Archer Daniels Midland (NYSE:ADM) was riding high on the back of the agriculture AND ethanol boom. But as soon as the credit crunch struck, both of those bull markets died and ADM’s stock tanked.
But finally it looks like ADM has turned a corner and is set to push higher over the months ahead.
As you can see, ADM has risen nearly 100% from its mid-October lows. While that’s a great rally, the real bullish signal is coming from the fact that ADM just broke above its 200-day moving average.
The 200-day moving average tends to be one of the strongest moving averages you can use as a support or resistance line. Usually, when a stock breaks above this long-term moving-average, it signals more gains to come.
To keep this play safe, all you have to do is enter a stop-loss about 10% under 200-day moving average. If ADM drops 10% under that average, it’s safe to say that the bull run will never materialize.
If ADM is on a real bull run, you could end up riding ADM shares back up to their previous highs by this time next year.
Advertisement
While most people are being decimated by the ongoing market collapse, a small group of smart folks are turning the market plunge into big gains of 224%... 279%... 214%... 291%... and more! Here’s how to turn the market crisis into your personal profit machine. First come, first served… so reserve your space now…
Charles Delvalle is a self-taught market-timing professional and value analyst who's followed and invested in the market for the past ten years. He uses a unique combination of technical and fundamental research to pinpoint rapid profit opportunities with stocks and options.
Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering undervalued, cash-rich companies. He frequently mocks government stupidities and points out the "inaccuracies (or lies, take your pick) that government reporting frequently dispels as "truth".
